Navigating Green Claims: CMA Guidance for Supply Chain Actors

On 22 January 2026, the Competition and Markets Authority published guidance clarifying responsibility for environmental claims across supply chains. "Making green claims: getting it right across the supply chain" supplements the Green Claims Code (September 2021) and addresses a critical question: when multiple parties are involved in bringing a product to market, who bears legal responsibility for claim accuracy?

Significantly, this is the first cross-sector guidance since the Green Claims Code was published in 2021, applying to all businesses in the supply chain regardless of sector.

The publication comes at a time when businesses navigate increasingly complex regulatory requirements around environmental marketing and sustainability claims.

Purpose and Approach

The guidance adopts a practical, risk-based approach. Through illustrative examples, it demonstrates who the CMA would likely prioritise for enforcement action in specific scenarios, enabling businesses to assess and manage their exposure more effectively.

Key Principles

The guidance establishes four foundational principles:

Shared but differentiated responsibility: Liability varies according to each party's role, control, and influence over the claim.
Risk-based enforcement: The CMA targets parties best placed to prevent or correct misleading claims—typically those with greatest control over content and presentation.
Proportionate due diligence: All supply chain actors must undertake checks appropriate to their role, expertise, resources, and verification capability.
Evidence-based claims: All environmental claims require substantiation before publication, regardless of where responsibility sits.

Practical Implications by Supply Chain Stakeholder

Brands and Manufacturers

Brands and manufacturers typically bear primary responsibility for environmental claims about their products. They are usually best placed to hold the evidence needed to substantiate claims and have the most direct control over product specifications and characteristics. The guidance makes clear that manufacturers cannot escape liability simply by passing information to retailers without ensuring its accuracy. The CMA’s position is that manufacturers should:

Ensure all environmental claims are substantiated with scientific evidence before sharing them with downstream partners
Provide clear, accurate information to retailers and other supply chain partners
Establish systems to monitor how their claims are being used and presented
Correct misleading claims promptly when identified, regardless of where they appear
Ensure internal systems prevent unauthorised or unsubstantiated claims from being communicated
Avoid informal communications that could lead to misleading claims being made

Example

If a clothing manufacturer provides information to a retailer stating that a garment is "made from 100% recycled materials" when in fact only the outer fabric is recycled, the manufacturer would likely be the primary target for CMA enforcement action, even if the retailer repeated the claim in good faith.

Retailers

The CMA's guidance states that retailers must take reasonable steps to ensure claims they make or repeat are not misleading. Whilst they may rely on manufacturer information, the CMA's view is that this does not eliminate their obligations.

According to the guidance, retailers should:

Implement due diligence processes appropriate to their size and resources
Question claims that lack clarity
Ensure their own marketing and presentation does not make existing claims misleading
Establish clear processes for receiving and verifying information from suppliers
Train staff to recognise potentially problematic claims

The CMA indicates that the level of checking required will depend on the retailer's sophistication, the nature of the product, and any warning signs that might indicate a claim is unsubstantiated.

Example

If a retailer adds its own marketing claim (such as "eco-friendly") to a product without checking whether this is substantiated, the retailer would likely be the primary target for enforcement, even if the manufacturer's original claims were accurate.

Online Marketplaces

The CMA's guidance acknowledges that marketplaces may have less direct control over seller claims but clarifies that they are not entirely exempt from responsibility.

According to the guidance, marketplaces should:

Establish clear policies prohibiting misleading environmental claims
Implement monitoring systems to identify potentially problematic claims
Respond promptly to reports of misleading claims
Take action to remove or correct misleading claims when identified
Provide guidance and resources to sellers about making compliant claims

The CMA indicates that it is more likely to take action against a marketplace where it has failed to respond to clear evidence of misleading claims or where systemic failures in its monitoring processes have allowed widespread non-compliance.

Intermediaries and Wholesalers

According to the guidance, intermediaries who simply pass products along the supply chain without making or embellishing claims are less likely to face enforcement action. However, the guidance clarifies that if they add to or modify claims, they may assume responsibility for those additions or modifications.

Enhanced Enforcement Powers

The guidance's publication comes after the Digital Markets, Competition and Consumers (DMCC) Act 2024 came into effect in April 2025. This legislation significantly strengthened the CMA's enforcement powers in relation to consumer protection law.

Under the new DMCC regime, the CMA can:

Directly determine whether a business has breached consumer protection law, without needing to go to court.
Issue fines of up to 10% of global turnover for businesses that breach consumer law.
Order businesses to compensate consumers who have suffered loss.
Accept binding commitments from businesses to address concerns.

These enhanced powers make compliance with the green claims guidance important, with financial and reputational risks elevated.

Impact of International Developments

As UK businesses increasingly operate in global markets, understanding the evolving international landscape for green claims regulation is essential.

On 27 November 2025, the European Commission published guidance on the Empowering Consumers for the Green Transition (ECGT) Directive, taking effect from 27 September 2026. This directive represents a significant departure from the UK's approach to regulating environmental claims.

Whilst the UK's framework remains rooted in general consumer protection law—now consolidated in the DMCC Act —the EU has adopted a prescriptive regime with explicit rules. This creates genuine divergence: UK law relies on broad prohibitions against misleading practices interpreted through CMA guidance, whilst EU law mandates specific requirements and blanket bans on certain claim types.

Key differences include:

Explicit EU bans on generic claims (such as "environmentally friendly") without robust substantiation, versus the UK's case-by-case approach
Stricter EU requirements for environmental labels and certification schemes
Potential EU pre-approval requirements with no UK equivalent

Businesses operating across both jurisdictions should monitor these developments and determine whether to adopt a common standard or territory-specific compliance approaches.

Practical Steps for Compliance

With the CMA's enhanced enforcement powers and growing regulatory focus on greenwashing, businesses are encouraged to review their practices and consider taking the following steps:

Reviewing existing claims: Audit all environmental claims across all channels and customer touchpoints
Assessing supply chain roles: Map where claims originate and which parties control their content
Strengthening substantiation: Ensure robust evidence exists for all claims and is readily accessible
Implementing governance: Establish clear internal approval and monitoring processes
Enhancing due diligence: Develop checking procedures for claims from supply chain partners
Training teams: Ensure relevant staff understand requirements and responsibilities
Monitoring and responding: Create systems to identify and correct problematic claims quickly

How Can We Help?

Our team offers comprehensive support to help you navigate environmental claims compliance, including:

Green Claims Training – Equipping your teams with the knowledge to create compliant and commercially effective sustainability claims
Risk & Compliance Audits – Assessing your green claims, identifying risks, and ensuring regulatory alignment
Policy Development & Strategy – Building clear sustainability policies that are legally compliant and enhance consumer trust

This publication is intended for general guidance and represents our understanding of the relevant law and practice as at January 2026. Specific advice should be sought for specific cases. For more information see our terms & conditions.

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